Apple is up with plans to cut down orders of its colourful iPhone 5C handset this quarter due to lower than expected sales and increasing popularity of its iPhone 5S.
According to the Wall Street Journal, the Cupertino has asked two of its assembler companies Pegatron and Hon Hai Precision (Foxconn) to trim fourth quarter shipments of its iPhone 5C model handset. Petragon assembles two third of the 5C units with Foxconn assembling the rest.
Apple has reportedly told Petragon to cut iPhone 5C shipments by around 20 percent and Hon Hai to slice the order by a third. People close to the matter from Foxconn have even reported that the iPhone maker is all set to increase iPhone 5S production.
Looking at the order cut, it is obvious that the 5C isn’t doing very well in the consumer market. The 5S has however clearly proven to be massive hit for the Cupertino Company. The 5C order cut does not necessarily mean a weak consumer demand. Apple has previously trimmed orders from different suppliers for several different reasons.
One of the primary reasons behind lackluster sales could be that Apple didn’t actually keep the iPhone 5C pricing at the lower end of the spectrum. A $550 starting price tag is something that can’t be considered ‘budget.’ Further the $99 iPhone 5C on two year contract has witnessed price cuts from Wal-Mart as well as Target.
With Apple’s iPad 5 and iPad mini 2 coming next week, it will be interesting to note whether the company scores yet another success with the new devices.